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In the Union Budget 2025, auto sector can get benefits from many sides- Not only from the newer tax bracket for more than 10 million people but also government schemes for Farmers and EV manufactures. Also lower export duties on premium vehicles.
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The Union Budget 2025 is focused towards Gareeb (Poor), Youth, Anndata (Agriculture), and Nari (Woman). Our finance minister mentioned the four powerful engines that drives country economy-- Agriculture, MSME, Investments, and Exports.
With over 10 million Indians set to pay zero income tax under the new brackets, automakers are hoping to increase their sales. The budget also slashed customs duties on imported bikes—Harley-Davidson and Suzuki Hayabusa riders will be happy. This move might even smooth things over with the new U.S. President’s tariff policies.
Maruti Suzuki, the PV market leader, has seen an 8% drop in small car sales this year. But experts say the tax cuts might reverse this trend, even as SUVs hog the spotlight. If just 5% of newly tax-free buyers splurge on wheels, it could kickstart a major rebound.
The budget turbocharges India’s EV plans by axing customs duties on 35 items needed for battery production. It’s not just about making batteries locally—the plan includes recycling, charging networks, and research into better tech. Solar and EV parts manufacturing are also getting a nod under the Clean Tech program.
A new scheme targets 100 low-productivity districts, aiming to help 1.7 crore farmers. There’s also a push for high-yield seeds and a six-year plan to boost pulses production. Rural areas might see more bikes and budget cars zooming around, thanks to upgrading India Post services and skill programs to tackle farm job shortages.
Five global-level skill centers, 50,000 school tinkering labs, and ₹20,000 crore for R&D hint at a tech-savvy future. Auto part makers could benefit as these moves aim to prep workers for high-tech jobs. Plus, a ₹500 crore AI center for education is in the works.
Small businesses, especially auto part makers, get easier loans with doubled credit guarantees (up to ₹10 crore). Micro-enterprises can snag ₹5 lakh credit cards, and labor-heavy sectors like footwear are getting extra love to create jobs and boost exports.
Middle-class wallets just got thicker: zero taxes on incomes up to ₹12 lakh (₹12.75 lakh for salaried folks). Farmers get bigger loans via Kisan Credit Cards, and street vendors score UPI-linked credit. More cash in hand? That’s a green light for consumer spending—good news for showrooms across the board.
Tax cuts, EV pushes, farm upgrades, and easier loans are the budget’s big bets to boost India’s economy—and automakers are here for it.
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